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Topic 3 Week 6Low Chui Fen 1112701885
Boong Lek Yang 1112702060
Kek Yik Joe 1112702574
Yap Kian Jin 1121116617
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Tuo!ia" #ue$ion$
% $ae&en on he o'(eci)e$ o* *inancia" $ae&en +i,e, he
concepua" *!a&ewo!k- ha$ a"wa.$ 'een !ecogni/e a$ u!gen ane$$enia" i* e'ae o)e! a"e!nai)e $ana!$ an !epo!ing
echniue$ i$ o 'e !e$o")e '. !ea$on an "ogic,
1, p"ain he pu!po$e o* a concepua" *!a&ewo!k,
2, Li$ *i)e 'ene*i$ o* a concepua" *!a&ewo!k,
3, Wha a!e he e$$enia" e"e&en$ i$c"o$e in CF
4, Li$ an ep"ain F accouning p!incip"e$,
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Question 1
T o a s s i s t I AS B
I n d e v e l o p
T o a s s i s t
I A S B
I n p r o m o
t e
T o a c t a
s
t h e
g u i d a
n c e
T
o
a s s
i s t
U s e r s Thepurpose of
aConceptualFramework
T o a s s i s t
A c c o u n t a n t
T o a s s i s t
S t a
n d a r d
s e t t i n
g
To assis t
Audi tors
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Thepurpose
a
ConceptuFramewo
T o a s s i
I AS B I n d e v e l o
•
Assist IASB indevelopment of thefuture accountingstandards
• Review of existing
accounting standard• Ensuring consistencyacross standards
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Thepurpose
a
ConceptuFramewo
I n p
•
Assist IASB inpromotingharmonisation ofregulations,accounting standardsand procedures
• Provide a basis forreducing the numberof alternativeaccounting treatmentpermitted by
accounting standards
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•
Assist standardsettingbodies such as the!ASB and the IASB indeveloping standardsof "nancial reporting
• Enable all interested
parties to gain a betterunderstanding of thereasons for standardsetters# conclusions
Thepurpose
a
ConceptuFramewo
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•
Assist auditors informing an opinion
• $hether "nancialstatements complywith internationalaccounting standards
To assis t
Audi tors
Thepurpose
a
ConceptuFramewo
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•
Assist preparers of"nancial statementssuch as accountant inapplying IASBapproved accountingstandards
Thepurpose
a
ConceptuFramewo
T o a s s i s t
A c c o u n t a n t
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•
Assist users of"nancial statementsin interpreting theinformation containedin "nancialstatements
• %onformity with IASBapproved accountingstandards
T o
a s s
i s t
U s e r s
Thepurpose
a
ConceptuFramewo
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•
&uidance to providemost consistent wayto prepare the"nancial statement
Thepurpose
a
ConceptuFramewo
T o a
c t a s
t h e
g u i d a
n c e
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e bene"ts of a %onceptual !r
Bene"ts(
Bene"ts)
Bene"ts
* Bene"ts+
Bene"ts
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e bene"ts of a %onceptual !r
Bene"ts( %onsistent, logical reporting
re-uirement
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e bene"ts of a %onceptual !r
Increased internationalcompatibility of Accounting
Standards
Bene"ts)
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e bene"ts of a %onceptual !r
Enhanced accountability
Bene"ts*
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e bene"ts of a %onceptual !r
Enhanced understanding ofreporting re-uirements
Bene"ts+
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e bene"ts of a %onceptual !r
.ore economical standardsettings
Bene"ts
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SE/E0 1E2 %30%EP45A6 !RA.EE6E.E04S
C!"C#$TUA%F&A'#(!&)
#lements
The !*+ective ofFinancial Statement
QCha
S
UnderlAssump
The #lemeFinancial Sta
&ecognition of the #lementsof Financial Statements
'easurement of thelements of Financial
Statements
Concepts of Capital -Capital 'aintenance 1
.
/
0
2
3
SE/E0 1E2 %30%EP45A6 !RA.E
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1The !*+ective
Financial Statem
C!"C#$TUA%F&A'#(!&)
#lements
•
!inancial Posi• !inancial
Performance
• %hanges in!inancial Posi
SE/E0 1E2 %30%EP45A6 !RA.EE6E.E04S
SE/E0 1E2 %30%EP45A6 !RA.E
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.
Underl,ingAssumption
C!"C#$TUA%F&A'#(!&)
#lements
•
Accrual Basis• &oing %oncer
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/
QualitativeCharacteristic
Financial Statem
C!"C#$TUA%F&A'#(!&)
#lements
•
5nderstandab• Relevance
• Reliability
• %omparability
• %onstraints onrelevant 7 relinformation
• 4rue 7 !air vie!air Presentat
SE/E0 1E2 %30%EP45A6 !RA.EE6E.E04S
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0
The #lementsFinancial Statem
C!"C#$TUA%F&A'#(!&)
#lements
•
!inancial Positio• Assets
• 6iabilities
• E-uity
• Performance
• Income
• Expenses
• %apitalmaintenancead9ustments
SE/E0 1E2 %30%EP45A6 !RA.EE6E.E04S
SE/E0 1E2 %30%EP45A6 !RA.E
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&ecognition of #lements of Fina
Statements
C!"C#$TUA%F&A'#(!&)
#lements
•
Reliability of.easurement
• Recognition oassets, liabilitincome expen
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2
'easurement o#lements of Fina
Statements
C!"C#$TUA%F&A'#(!&)
#lements
•
.easurementtoward Asset6iabilities, E-Income 7Expenses
SE/E0 1E2 %30%EP45A6 !RA.EE6E.E04S
SE/E0 1E2 %30%EP45A6 !RA.E
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3
Concepts of CapCapital 'ainten
C!"C#$TUA%F&A'#(!&)
#lements
•
%oncepts of%apital
• %oncepts of%apital.aintenance the
determinationpro"t
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!35R accounting princip
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!35R accounting princip
:istorical%ost
!ull;isclosure
RevenueRecognition
.atching
!35R accounting princip
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!35R accounting princip
:istorical%ost
4istoricalCost
• Initialrecording
"nancialtransactiomust be attheir origincashe-uivalentcost<
!35R accounting princip
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!35R accounting princip
!ull
;isclosure
Full 5isclosur
• !inancialstatement
containenoughinformatiothat they anotmisleading
!35R accounting princip
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!35R accounting princip
.atching
'atching
• A companyrecords revein the accou
period whenservices arecompleted ogoods aredelivered tocustomer, nwhen thecustomer mpayment<
!35R accounting princip
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!35R accounting princip
RevenueRecognition
&evenu&ecognit
• A companyrecordsexpenses iaccountingperiod in wit helped crrevenue, nwhen paymwas made the expens
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Tuo!ia" %ci)iie$
p"ain he &ain change$ p!opo$e in he new po$u!e
!a* on Concepua" F!a&ewo!k '. 9%:B i$$ue on 28 ;a.2015, You nee o p!epa!e 20 &inue$ p!e$enaion
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;ain change$ +9n e!& o* chape!$-
'(eci)e
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'(eci)e
9n e$c!i'ing he o'(eci)e o* gene!a" pu!po$e *inancia"
!epo!ing< CF does not use the word ‘stewardship=, :o&e ha)eine!p!ee hi$ a$ &eaning ha he Concepua" F!a&ewo!k no
"onge! !ea$ in*o!&aion a'ou $ewa!$hip a$ pa! o* wha i$neee o &ee he o'(eci)e o* *inancia" !epo!ing,
Cu!!en o'(eci)e o* gene!a" pu!po$e *inancia" !epo!ing>
The objective of general purpose financial reporting is to
provide financial information about the reporting entity that
is useful to existing and potential investors, lenders andother creditors (users of financial statements) in making
decisions about providing resources to the entity.
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'(eci)e +con=-
?9n*o!&aion u$e*u" in (uging &anage&en@$ a'i"i. o ui"i/e
ene!p!i$e !e$ou!ce$ e**eci)e". in achie)ing he p!i&a!.
ene!p!i$e goa"A ?when in)e$ing in a co&pan.< .ou o no $i&p". 'u. $o&e
a$$e$ an "ia'i"iie$< .ou e$$enia"". !u$ he inenion$ o*
he co&pan., i,e, he &anage&en an he wa. he. inen
o $ewa! he capia" en!u$e o he&, he!wi$e< he
in)e$o! wou" ha)e 'ough ohe! a$$e$ o! $ha!e$A
?in no ha)ing $ewa!$hip a$ an o'(eci)e< he!e i$ a ange!
in he *uu!eA
Sources from the article “ommentary on phase ! of the revised conceptual frame"ork#
$mplications for global financial reporting% &ajni 'ala armod hand (*+-)
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'(eci)e +con=-
9n 2015 po$u!e !a* p!opo$e$>
To gi)e &o!e p!o&inence< wihin he o'(eci)e o* *inancia"!epo!ing< o he i&po!ance o* p!o)iing in*o!&aion
neee o a$$e$$ &anage&en=$ $ewa!$hip o* he
eni.=$ !e$ou!ce$
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#ua"iai)e Cha!ace!i$ic$
:ince 2010< he Concepua" F!a&ewo!k ha$ no "onge! ieni*ie
wa$ !e"ia'i"i. i$ no "onge! ieni*ie a$ a ua"iai)e
cha!ace!i$ic o* u$e*u" *inancia" in*o!&aion, %n e$c!ipion o**aih*u" !ep!e$enaion wa$ oo gene!a", %$ a !e$u" i *ai"e o
ieni*. he kin o* in*o!&aion ha $hou" 'e p!e$ene in
*inancia" $ae&en$, Thei! &ain conce!n $ee&$ o 'e ha
&ea$u!e&en unce!ain. &ake$ *inancia" in*o!&aion "e$$
u$e*u", 9n !e$pon$e< he 9%:B p!opo$e$ o c"a!i*. ha
&ea$u!e&en unce!ain. i$ one *aco! ha can &ake *inancia"in*o!&aion "e$$ !e"e)an,
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#ua"iai)e Cha!ace!i$ic$
9n hi$ po$u!e !a* p!opo$e$>
+a- To c"a!i*. ha &ea$u!e&en unce!ain. i$ one *aco!ha can &ake *inancia" in*o!&aion "e$$ !e"e)an< an
ha he!e i$ a !aeo** 'eween he "e)e" o*
&ea$u!e&en unce!ain. an ohe! *aco!$ ha &ake
in*o!&aion !e"e)an an
+'- To coninue o ieni*. !e"e)ance an *aih*u"
!ep!e$enaion a$ he wo *una&ena" ua"iai)e
cha!ace!i$ic$ o* u$e*u" *inancia" in*o!&aion,
Change$> epo!ing ni.
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epo!ing ni.
1, D!o'"e& Face+i$ing
Concepua"F!a&ewo!k-
• Eo c"ea! guie"ine e$c!ipion an 'ouna!ie$ o*!epo!ing eni.
2,eco&&enaion$+po$u!e !a*28,5,2015-
(i) Description of reporting entity• ni. ha choo$e$G !eui!e o p!epa!e gene!a" pu!po*inancia" $ae&en$,• Eo nece$$a!i". "ega" eni.,• Do!ion o* eni. G H2 eniie$,
Change$> epo!ing ni.
epo!ing ni.
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epo!ing ni.
2,eco&&enaion$+po$u!e !a*28,5,2015-
(ii) Boundary of reporting entityee!&ine '. 2 wa.$>• i!ec Con!o"• 9ni!ec Con!o"
Differences Direct Control Indirect Control
1, Financia":ae&en o*!epo!ing eni.
ncon$o"iae*inancia"$ae&en$
Con$o"iae*inancia"$ae&en$
2, epo!e '.pa!en$
cono&ic!e$ou!ce$con!o""ei!ec".
cono&ic!e$ou!ce$con!o""eini!ec".
3, eu!n$ oin)e$o!,< "ene!$an ohe!c!eio!$
epen on he*uu!e ne ca$h*"ow$ o* hepa!en eni.
epen pa!". onhe *uu!e neca$h in*"ow$ an'ene*i$ *"ow ino$u'$iia!.,
4, $e*u"in*o!&aion
Le$$ u$e*u" ;o!e u$e*u"
Change$> "e&en$ o* Financia" :ae&en
bl / d ( i i l / k)
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D!o'"e&$ %$$e Lia'i"i. ui. 9nco&e pen$e$
MainProblem:
e*iniion i$$u'(eci)e<)ague an'!oa
+i- Con*u$ea'ou ?epece
*uu!e econo&ic'ene*iA-“xpected% "illbe interpreted asconveying
probability andnot provide
guideline on the
minimumthreshold ,+ii- &pha$i/e&o!e onieni*.ing he*uu!e econo&ic'ene*i$,
+i- Con*u$ea'ou ?epece
*uu!e econo&ic'ene*iA-“xpected% "illbe interpretedas conveying
probability andnot provide
guideline on the
minimumthreshold.+ii- Lack o*guie"ine on(u$i*. pa$$e)en $u**icieno c!eaep!e$en
o'"igaion,
Eo e**ec,
roblems /aced (xisting onceptual /rame"ork)
Change$> "e&en$ o* Financia" :ae&en
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eco&&enaion 1, %::T
Mainecommendation:e)i$e he e*iniion
!"isting C#:%n a$$e i$ a !e$ou!ce which i$ con!o""e '. an enia !e$u" o* pa$ e)en an *uu!e econo&ic 'ene*i$ epece o *"ow ino he eni.,
Current !D:%n a$$e i$ he p!e$en econo&ic !e$ou!ce con!o""ean eni. a$ a !e$u" o* pa$ e)en$,• D!e$en I cono&ic !e$ou!ce$ an !igh o u$e hea$$e$ &u$ ei$ on 'a"ance $hee ae,•
cono&ic !e$ou!ce$ I !igh o p!ouce econo&ic'ene*i$,• cono&ic 'ene*i nee no 'e ce!ain 'u &u$ capo p!ouce econo&ic 'ene*i$,• %$$e i$ a !e$ou!ce< no u"i&ae ca$h in*"ow,
&ecommendation (xposure 0raft *1.-.*+-)
Change$> "e&en$ o* Financia" :ae&en
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eco&&enaion 2, L9%B9L9TY
Mainecommendation:e)i$e he e*iniion
!"isting C#:% "ia'i"i. i$ a p!e$en o'"igaion o* he eni. a!i$ing*!o& pa$ e)en$< he $e"e&en$ o* which i$ epeco !e$u" in an ou*"ow *!o& he eni. o* !e$ou!ce$e&'o.ing econo&ic 'ene*i$,
Current !D:% "ia'i"i. i$ a p!e$en o'"igaion o* he eni. o !aan econo&ic !e$ou!ce a$ a !e$u" o* pa$ e)en$,• D!e$en I cono&ic o'"igaion an eni. i$ he o'"&u$ ei$ on 'a"ance $hee ae,•
cono&ic o'"igaion I unconiiona" p!o&i$e$ o giecono&ic !e$ou!ce$,• D!e$en o'"igaion nee no 'e ce!ain 'u &u$capa'"e o !an$*e! he econo&ic !e$ou!ce$ in *uu!e
&ecommendation (xposure 0raft *1.-.*+-)
Change$> "e&en$ o* Financia" :ae&en
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eco&&enaion 3, #9TY 4, 9EC; 5, DE::
Mainecommendation:e)i$e he e*iniion
e&ain he $a&e G Eo $igni*ican change$
&ecommendation (xposure 0raft *1.-.*+-)
Change$> "e&en$ o* Financia" :ae&en
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9&pac onChange$ Ga&p"e
%$$e Lia'i"i. ui. 9nco&e p
9&pac$ Ga&p"e$>:o&e o* heie&$ a!e!ec"a$$i*ie,
+i- Ca"" pion• Ba$e on <ca"" opion wi""'e caego!i/e a$a$$e• Capa'i"i. op!ouce
econo&ic'ene*i$,
+i- :an!ea.o'"igaion• Ba$e on <$an!ea.o'"igaion wi""'e !ecogni/e a$"ia'i"i.,•
Capa'i"i. o!an$*e! heecono&ic!e$ou!ce$•,g> o'"igaionune! a p!oucwa!!an.
$mpact on hanges 2 xample
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ecogniion e!ecogniion
D!oce$$ o* capu!ing an a$$e$ an "ia'i"i. *o! inc"u$ion
o* he $ae&en o* *inancia" po$iion,
ecogniion
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i$ing !ecogniion !eui!e&en +p!o'a'i"i. an
!e"ia'"e &ea$u!e&en- ha)e cau$e i$$ue$ in he pa$, :o&e ei$ing :ana!$ o no app". a
p!o'a'i"i. !ecogniion c!ie!ion,
Fo! ea&p"e< 9F: Financia" 9n$!u&en$, Tho$e ha
o app". $uch a c!ie!ion u$e i**e!en p!o'a'i"i.
h!e$ho"$, The$e inc"ue Mp!o'a'"e=< M&o!e "ike". hanno=< M)i!ua"". ce!ain= an M!ea$ona'". po$$i'"e=,
D!o'"e&
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ecogniion C!ie!ia
ne! he < an eni. wou" !ecogni/e an a$$e o! a
"ia'i"i. i* $uch !ecogniion p!o)ie$ *inancia" $ae&en
u$e!$ wih>
i, e"e)an in*o!&aion a'ou he a$$e o! he "ia'i"i. an
a'ou an. inco&e< epen$e$ o! change$ in eui.,
ii, % *aih*u" !ep!e$enaion o* he a$$e o! he "ia'i"i. an
o* an. inco&e< epen$e$ o! change$ in eui.,
iii, 9n*o!&aion ha !e$u"$ 'ene*i$ eceeing he co$ o*
p!o)iing ha in*o!&aion,
Th i i " ' h
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Tho$e c!ie!ia &a. no a"wa.$ 'e &e when one o! &o!e
o* he *o""owing app"ie$>
i, 9 i$ unce!ain whehe! an a$$e o! "ia'i"i. ei$$
ii, The!e i$ on". a "ow p!o'a'i"i. o* *uu!e in*"ow$
+ou*"ow$- o* econo&ic 'ene*i$ *!o& he a$$e
+"ia'i"i.- o!
iii, The "e)e" o* &ea$u!e&en unce!ain. i$ $o high ha
he !e$u"ing in*o!&aion ha$ "i"e !e"e)ance,
9
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%n eni. $hou" !ecogni$e a"" i$ a$$e$ an "ia'i"iie$<
un"e$$ he 9%:B ecie$ ha>
i, ecogni$ing an a$$e o! a "ia'i"i. wou" p!o)ie u$e!$
o* *inancia" $ae&en$ wih in*o!&aion ha i$ no
!e"e)an< o! i$ no $u**icien". !e"e)an o (u$i*. he
co$ o!
ii, Eo &ea$u!e o* an a$$e o! a "ia'i"i. wou" !e$u" in a
$u**icien". *aih*u" !ep!e$enaion o* 'oh ha a$$eo! "ia'i"i. an he !e$u"ing inco&e o! epen$e,
9&pac
ii
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D!oce$$ o* !e&o)ing a"" o! a pa! o* an
a$$e$ o! "ia'i"i. *!o& he $ae&en
o* *inancia" po$iion,
e!ecogniion
Th i i C " F k i
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The ei$ing Concepua" F!a&ewo!k oe$ no p!o)ie
guiance on e!ecogniion, The po$u!e !a*
p!opo$e$ guiance ai&e a p!o)iing a *aih*u"
!ep!e$enaion o*>
i, The a$$e$ an "ia'i"iie$ !eaine a*e! a !an$acion
o! ohe! e)en ha "e o e!ecogniion an
ii, The change in he eni.=$ a$$e$ an "ia'i"iie$ a$ a
!e$u" o* ha !an$acion o! ohe! e)en,
The i$cu$$ion Dape! $ugge$e ha po$$i'"e
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The i$cu$$ion Dape! $ugge$e ha po$$i'"e
app!oache$ *o! hi$ cou" inc"ue>
+i- nhance i$c"o$u!e
+ii- D!e$ening an. !igh$ o! o'"igaion$ !eaine on a "ine
ie& i**e!en *!o& he "ine ie& ha wa$ u$e *o!
he o!igina" !igh$ o! o'"igaion$< o high"igh he
g!eae! concen!aion o* !i$k o!
+iii- Coninuing o !ecogni$e he o!igina" a$$e o! "ia'i"i.
an !eaing he p!ocee$ !ecei)e o! pai *o! he
!an$*e! a$ a "oan !ecei)e o! g!ane
The 9%:B noe ha i i$ po$$i'"e o !e$o")e $o&e< 'u
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The 9%:B noe ha i i$ po$$i'"e o !e$o")e $o&e< 'u
no a""< appa!en con*"ic$ 'eween he con!o"
app!oach an he !i$k$an!ewa!$ app!oach '.
con$ie!ing>
i, whehe! a !an$*e!ee acui!e$ an a$$e a$ a p!incipa"o! a$ an agen an
ii, he *ac ha< in $o&e ca$e$< coninuing epo$u!e o
)a!iaion$ in 'ene*i$ +$o&ei&e$ known a$ epo$u!e
o he $igni*ican !i$k$ an !ewa!$ o* owne!$hip- i$ an
inicao! o* coninuing con!o",
;ea$u!e&en
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;ea$u!e&en
D!o'"e&>
Li"e guiance i$ p!o)ie on &ea$u!e&en an when
pa!icu"a! &ea$u!e&en 'a$i$ $hou" 'e u$e
9&pac G ea&p"e$>
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9&pac G ea&p"e$>
;ea$u!e a"" he a$$e$ an "ia'i"iie$ on he $a&e o! one 'a$i$
;ea$u!e a *ai! )a"ue 'a$i$
:o&e o* he u$e!$ &a. con$ie! in*o!&aion a'ou cu!!en &a!k p!ice$ o 'e "e$$ !e"e)an han in*o!&aion a'ou &a!gin$ gene!a
'. pa$ !an$acion$
;ea$u!e a hi$o!ica" co$ 'a$i$
Fai" o p!o)ie !e"e)an in*o!&aion o he u$e!$ o* *inancia"
$ae&en
Na! o ee!&ine he 'a$i$ u$e $ince he !e"e)ance o* a pa!icu"a!
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&ea$u!e&en epen on how he u$e!$ a!e "ike". o a$$e$$ how an
a$$e o! a "ia'i"i. con!i'ue o he eni.=$ *uu!e ca$h *"ow
Fai! )a"ue 'a$i$
O i$po$a" o* a$$e$ con!i'ue o he eni.=$ *uu!e ca$h *"ow O e!i)ai)e$ $uch a$ *inancia" a$$e$ o! "ia'i"iie$ ha !api".
change$ in )a"ue
Ni$o!ica" co$ 'a$i$
O $e!$ wi"" o*en a$$e$$ how $uch a$$e$ wi"" con!i'ue o *uu!e
ca$h *"ow$ a'ou !an$acion$ an he con$u&pion o* a$$e$ o
ieni*. pa$ &a!gin$ an e$i&ae *uu!e &a!gin$
Faih*u" !ep!e$enaion oe$ ha)e $o&e i&p"icaion$ in e!&$ o* he
" i * ' i
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$e"ecion o* &ea$u!e&en 'a$i$
9%:B &a. nee o con$ie! how 'e$ o po!!a. an. "ink 'eween
ie&$ when eciing whehe! a pa!icu"a! &ea$u!e&en *aih*u"".
!ep!e$en$ an eni.=$ *inancia" po$iion an pe!*o!&ance
:a&e &ea$u!e&en app!oach i$ encou!age o u$e *o! !e"ae
a$$e$ o! "ia'i"iie$ $ince he u$e o* i**e!en &ea$u!e&en$ &a.
"ea o &ea$u!e&en incon$i$enc. p!o'"e&
Con*"ic wa$ c!eae in e!&$ o* he u$e o* &ea$u!e&en 'a$i$ $inci wa$ una'"e o $ai$*. 'oh ua"iai)e cha!ace!i$ic$ o* he u$e*
*inancia" in*o!&aion
eco&&enaion G $ugge$ion>
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The app"icaion o* $ing"e &ea$u!e&en 'a$i$ *o! a"" a$$e$ an
"ia'i"iie$ i$ no encou!age
:ugge$ion on he u$e o* &ea$u!e&en 'a$i$ *o! a pa!icu"a! a$$e o
"ia'i"i. $hou" con$ie! he *o""owing e"e&en$> Now he a$$e$ con!i'ue o he *uu!e ca$h *"ow$ o! how he en
wi"" *u"*i" o! $e"e he "ia'i"i.
Wha in*o!&aion ha &ea$u!e&en 'a$i$ wi"" p!ouce in he
$ae&en o* *inancia" po$iion an he $ae&en o* co&p!ehen$i
inco&e
The nu&'e! o* i**e!en &ea$u!e&en$ u$e $hou" 'e he $&a""e$
nu&'e! nece$$a!. o p!o)ie !e"e)an in*o!&aion
D!e$enaion an i$c"o$u!e
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D!e$enaion an i$c"o$u!e
D!o'"e&>
Eo p!incip"e$ p!o)ie in he ei$ing concepua"*!a&ewo!k o ee!&ine +a- which ie&$ o* inco&e o!
epen$e $hou" 'e p!e$ene in D!o*i an Lo$$ +'- which
ie&$ $hou" 'e p!e$ene in he! Co&p!ehen$i)e 9nco&e
+C9-
% $ecion on i$c"o$u!e$ in= p!o)ie which "ea o'u!en on p!epa!e!$ an *ai" o i$c"o$e &o!e !e"e)an
in*o!&aion o in)e$o!$
9&pac G ea&p"e$>
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p p
%cco!ing o P%%D< !ea"i/e gain$ a!e inc"ue in D!o*i
an Lo$$ +DGL- whi"e un!ea"i/e gain$ $hou" 'e i$c"o$e in
he! Co&p!ehen$i)e 9nco&e +C9-
i**e!en !ea&en$ a!e aope in e!&$ o* un!ea"i/egain$ *o!
!e$peci)e $ana!$
9%: 16 D!ope!. D"an an uip&en
9%: 40 9n)e$&en D!ope!ie$
Th " i*i i * * i DGL + "i -
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The !ec"a$$i*icaion o* *!o& eui. o DGL +!ec.c"ing-
i**e!en !ea&en$ a!e aope in e!&$ o* whe!e gain$ o! "o$$e$
a!e !ec"a$$i*ie *!o& eui. o DGL a$ a !ec"a$$i*icaion a(u$&en
9%: 21 The **ec$ o* Change$ in Fo!eign change ae$
9%: 16 D!ope!. D"an an uip&en
Eo !ec"a$$i*icaion !u"e i$ p!o)ie
Pain$ ha ha)e 'eco&e !ea"i/e *!o& !an$acion$ in he
accouning pe!io a!e no *u"". !epo!e in he D!o*i an Lo$$ +DGL-
The recording of asset purchases, revaluation, disposal and the transferto RE (IAS 116 - Property, Plant and Equipment)
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On purchase $m $m
Dr Land PPE 10
Cr Cash 10
On revaluation $m $m
Dr Land PPE 2
Cr OCE and
recognized
in OCI
2
Sources from the article “34TS 3/ &3/$T 3& 53SS !40 3T6&
3'&64S$7 $43' (*+-)%
On disposal $m $m
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Dr Cash 13
Cr Land PPE 12
Cr P/L 1
On transfer$m $m
Dr OCE 2
Cr Retained earnings 2
Sources from the article “34TS 3/ &3/$T 3& 53SS !40 3T6&
3'&64S$7 $43' (*+-)%
eco&&enaion G $ugge$ion >
Two app!oache$ a!e !eco&&ene ha a!e u$e o e$c!i'e which
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Two app!oache$ a!e !eco&&ene ha a!e u$e o e$c!i'e which
ie&$ cou" 'e inc"ue in he! Co&p!ehen$i)e 9nco&e +C9-
?na!!owA app!oach an
?'!oaA app!oach The app!oache$ !eco&&ene in g!ouping C9 ie&$ ha$ e)o")e in
h!ee caego!ie$
'!iging ie&$
&i$&ache !e&ea$u!e&en$
!an$io!. !e&ea$u!e&en$
B!iging ie&$ $a&e a$$e o! "ia'i"i. i$ !ep!e$ene in he
$ae&en o* *inancia" po$iion an i&pac$ p!o*i
"o$$ u$ing wo i**e!en &ea$u!e&en$
;i$&ache !e&ea$u!e&en$
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a!i$e$ when o**$eing i&pac o* "inke !an$acion$ o! ohe! e)en
i$ no .e !ecogni/e
T!an$io!. !e&ea$u!e&en$ a!i$e when an ie& &ee a"" he
coniion$>
a$$e$ ui"i/e G "ia'i"iie$ $e"e o)e! he "ong e!&
cu!!en pe!io !e&ea$u!e&en i$ epece o !e)e!$e *u"".< o!
change $igni*ican".< o)e! he ho"ing pe!io o* he a$$e o! "ia'i"
cu!!en pe!io !e&ea$u!e&en enhance$ he !e"e)ance o* p!o*i o
"o$$
When he ie&$ !ecogni/e in C9 $hou" 'e !ec"a$$i*ie ino p!o*i
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o! "o$$
B!iging ie&$
ec.c"e a$ a con$euence o* he &ea$u!e&en 'a$i$ p!e$ene i p!o*i o! "o$$ +DGL-
;i$&ache !e&ea$u!e&en$
ec.c"e when he ie& can 'e p!e$ene wih he &ache ie&
T!an$io!. !e&ea$u!e&en$
ec.c"e *o! $o&e .pe$ o* C9 ie&$ i* an when i p!o)ie$
!e"e)an in*o!&aion in p!o*i an "o$$ +DGL-
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# %